Quiet Week

This week was one of the quietest of the year. The major economic data generally matched the expected levels, and mortgage rates ended nearly unchanged.

Core CPI July 2018

The most significant economic data released this week was the inflation data. The Consumer Price Index (CPI), the most closely watched monthly inflation report, looks at the price change for finished goods and services. Thursday’s release revealed that inflation has continued to rise in recent months. Core CPI, which excludes the volatile food and energy components, was 2.3% higher in June, up from an annual rate of increase of 2.2% last month. This was the highest level since January 2017.

While it had little market impact, Fed officials took careful note of the latest JOLTS report. The data revealed that there were 6.6 million open positions, but only 6.1 million unemployed people in the labor force. 36% of small businesses reported not being able to fill open positions in June, matching the record peak seen in 2000. Also, a very high level of employees willingly left their jobs, which is an indication that they are confident in their prospects for finding another job. All of these signs point to a tightening labor market.

Looking ahead, Retail Sales will be released on Monday. Consumer spending accounts for about 70% of economic activity in the U.S., and the retail sales data is a key indicator of growth. Industrial Production, another important indicator of economic growth, will come out on Tuesday. Housing Starts will be released on Wednesday.

Weekly Change
Mortgage rates flat 0.00
Dow rose 700
NASDAQ rose 300
Mon 7/16 Retail Sales
Tue 7/17 Industrial Production
Wed 7/18 Housing Starts

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Housing Data

After last week’s packed economic calendar, this week there was virtually no significant news except for some housing market data. It was an extremely quiet week, and mortgage rates ended almost unchanged.

In May, sales of previously owned homes decreased slightly from April, and they were 3% lower than a year ago. The inventory of previously owned homes for sale rose 3% from April to a 4.1-month supply, but it was 6% lower than a year ago. Even with the increase, inventory levels remain very low by historical standards and are holding back sales. A 6.0-month supply is considered a healthy balance between buyers and sellers. The median home price was 5% higher than a year ago.

In an encouraging sign, home builders may be helping to address the shortage of inventory. In May, housing starts jumped a stronger than expected 5% from April, to the highest level since July 2007. Both single-family and multi-family units rose by a comparable amount. Despite rising labor and lumber costs, builders appear to be eager to supply more homes to the markets.

Looking ahead, New Home Sales will be released on Monday. Durable Orders, an important indicator of economic activity, and Pending Home Sales will come out on Wednesday. Core PCE, the inflation indicator favored by the Fed, will be released on Friday. In addition, Treasury auctions on Wednesday and Thursday could influence mortgage rates.

All material Copyright © Ress No. 1, LTD (DBA MBSQuotelin

Italy and U.S. Job Gains – June 2018 Edition

News from Italy was positive for mortgage rates this week. However, this was partially offset by stronger than expected U.S. labor market data. Mortgage rates ended the week a little lower.

Italy has one of the largest economies in the European Union (EU). In recent years, Italy’s economic growth has been below the average for the EU as a whole, and its unemployment rate has been higher than average. The newly formed coalition government is proposing some major changes to attempt to address these issues. In particular, it would like to reduce the government spending constraints imposed by EU rules. Investors are concerned that this will lead to an increase in Italy’s already large budget deficit and that the risk has increased that Italy could one day exit the EU. The resulting uncertainty caused investors to shift to safer assets, including U.S. mortgage-backed securities (MBS), which helped push mortgage rates lower this week.

By contrast, stronger than expected labor market data pressured mortgage rates a little higher on Friday. Against a consensus forecast of 190,000, the economy added 223,000 jobs in May. In addition, upward revisions added 15,000 jobs to the results for prior months. The economy has gained an average of a very healthy 207,000 jobs per month so far this year.

The unemployment rate declined from 3.9% to 3.8%, the lowest level since 2000. Average hourly earnings, an indicator of wage growth, were 2.7% higher than a year ago, up from an annual rate of increase of 2.6% last month.

Looking ahead, Factory Orders will be released on Monday. The ISM national services index will come out on Tuesday. The JOLTS report, which measures job openings and labor turnover rates, will be released on Wednesday. In addition, news about Italy could influence mortgage rates again next week.

All material Copyright © Ress No. 1, LTD (DBA MBSQuotelin

ECB Spooks Investors – May 2018 Edition

The market moving economic news this week again was viewed as negative for mortgage rates. This time the source was the European Central Bank (ECB). The U.S. economic data mostly came in on target and caused little reaction. Mortgage rates reached the highest levels in seven years.

On Monday, a speech from a top ECB official was viewed by investors as unexpectedly hawkish, meaning in favor of tighter monetary policy. Galhau, the governor of the Bank of France, said that the ECB might soon provide guidance about the timing of its first rate hike in years. While investors anticipate that the ECB will end its bond buying program later this year, they were somewhat surprised by the talk about rate hikes, and some investors viewed his speech as opening the door for rate hikes to take place sooner than expected. Bond yields around the world moved higher after the speech, including U.S. mortgage rates.

Next to the Employment data, the report on retail sales is one of the most closely watched each month. Consumer spending accounts for about 70% of economic activity in the U.S., and the retail sales data is a key indicator of growth. Following the hurricanes, retail sales showed very strong gains for three months last fall.

Sales then unexpectedly posted three months of losses, causing investors to worry that economic growth was slowing. However, the most recent data released this week showed a healthy increase in April of 0.3% from March. Combined with the solid gains seen in March, it appears that the three weak months were not indicative of a longer-term trend.

Looking ahead, New Home Sales will be released on Wednesday and Existing Home Sales on Thursday. Durable Orders, an important indicator of economic activity, will come out on Friday. In addition, Treasury auctions on Wednesday and Thursday could influence mortgage rates.

All material Copyright © Ress No. 1, LTD (DBA MBSQuotelin

MGIC Economic Report

Following are some key highlights from the January Economic report:

– The U.S. economy is healthy and continues to growth at a steady pace.
– For the most part, the economy is not currently showing signs of overheating.
– Payrolls continue to expand at a steady rate as the unemployment rate remains under 5%.
– The U.S. is on course to add over 2 million workers to payrolls for the 6th straight year.
– Even though employment growth is slower than previous years, it is still enough to accommodate new entrants into the work force.
– Current job opening are around 5.5 million, which should result in stronger wage growth as well as attract more workers into the labor force.
– Some industries continue to report that they are having a difficult time finding the skilled workers to fill open positions.
– The West remains the strongest of the four regions, followed by the South.
– The strongest job growth was reported in California, Florida, Texas, New York, Washington and Georgia.
– Similar to the overall economy, the housing market grew at a slow and steady rate.
– The housing market should continue to improve as the underlying fundamentals of the economy remain solid.
– Total home sales, both new and existing properties, are currently about 6 million on an annual basis, with the strongest activity being in the South.
– The supply of both new and existing homes is currently near 5 months.
– The lack of inventory for both new and existing homes remains a problem and is impacting housing affordability in some markets.
– Home price appreciation remains in the 5% to 6% range, with some of the strongest gains being in the West.
– Most economic forecasts for 2017 remains positive with growth similar to 2016; however, there are a number of unknown factors that could cause a change with the new administration.


Appreciation is Over 13%: Home Values are Going Up

Welcome back to double-digit appreciation rates.  And its not a fad. Home Prices have now logged 20 straight months of gains in home values.

The S&P Case-Shiller 20-city home price index climbed 1.05% month-over-month in October. On a year-over-year basis, home prices were up 13.61%.This was the biggest gain since February 2006.

“Home prices increased again in October,” David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices said in a press release. “Both Composites’ annual returns have been in double-digit territory since March 2013 and increasing; now up 13.6% in the year ending in October.


FHA Loan for Nebraska & Iowa

FHA loan helps first time home buyers

We all know how difficult it can be to buy your first home. If you are a first time home buyer looking to buy property in Colorado, Denver, Iowa, Omaha or Nebraska you need find out if you qualify for a FHA loan. An FHA mortgage is insured by the Federal Housing Administration and the good news is that it is easier to qualify for a FHA loan than a conventional mortgage.

An FHA mortgage also offers other benefits including lower rates, lower mortgage settlements and lower down payments.  If you are looking to buy real estate in the Midwest, Freedom Lending can help with an FHA mortgage, thereby bringing you one big step closer to your owning your dream home. And you don’t need a perfect credit score to qualify for an FHA loan. Even if you have filed for bankruptcy or have a bad credit history, Freedom Lending can help you with your credit repair and your FHA loan.

Heavy deposits of 10% and more often make it impossible new home seekers to acquire real estate.  An FHA loan only requires a down payment of 3.5% thereby lowering the barriers to entry substantially. The FHA also makes it possible for sellers or builders to pay some of the mortgage closing or settlement costs. This makes the property purchase even more attractive and helps to close the sale. You can also refinance your existing mortgage with FHA streamline refinancing.

So as you can see there are many advantages and benefits to an FHA loan. In order to get an FHA loan you need to apply through an FHA approved lender such as Freedom Lending. Now you can get your little piece of real estate right here in the Midwest, from Colorado to Nebraska.

Home Loans and Home Mortgages in Iowa, and Nebraska

How do I take a home loan?

Home Loan in Colorado: You wish to buy a house in Colorado, Denver, Iowa, Omaha or Nebraska and your only option is to take a home loan. You don’t know what to choose: a mortgage or real estate loan? To help you understand more easily, we offer you a few details about the mortgage credit. In theory, a mortgage credit is an alternative of the real estate, but in banks’ offers there are a few differences between the two types of loans, depending on each bank. The mortgage loan is guaranteed by a mortgage on real estate, being intended for the purchase of one or more buildings, apartments, houses, sites, also for building renovation, expansion and their construction.

If you opt for a mortgage loan, you have to make a life insurance and an insurance for the property you want to buy. Before taking a mortgage loan, you should study carefully the banking market, because there are banking institutions that offer you along with the mortgage loan a free life insurance policy. The amount of such loan must be less than 3,000 euros and the period of repayment is between 3 and 35 years. Anticipated, partial or total repayment of mortgage loan is possible if the customer asks for it and with the bank’s approval, after paying the anticipated repayment fee. Trough mortgage credit , the bank offers you a financing of maximum 75 percent of the house value, the own contribution of 25% being mandatory. There are banks that do not force you to pay an advance, but take into account your monthly income. As higher your salary is, as much chances you have to afford a mortgage loan without an advance. Your monthly mortgage loan can be paid from your salary, from incomes of independent activities, rents or dividend incomes.

Best Mortgage in Iowa, and Omaha Nebraska

Best mortgage with or without bad credit

Deciding which home loan agents can help you get the best mortgage is almost as important as deciding which house to buy. When you want to buy property in the Midwest, be it Colorado, Denver, Iowa, Omaha or Nebraska, you will want to secure the best mortgage deal available.

Well you can simply visit a bank and accept the first offer that gets put on the table. Now that probably won’t be the smartest thing to do. Then if you have some bad credit history, chances are you won’t even get that first deal on the table, not on your own.  Well there is good news for home buyers in the Midwest. When you need a home loan the experts at Freedom Lending will help you secure the best possible mortgage, whether you have bad credit or not.

You see when it comes to property finance and mortgage loans there are so many variations and options that it is almost impossible for the average person to decide which home loan or mortgage is best suited for him or her.  There are fixed rate mortgages, variable rate home loans, first home buyer loans, zero down home loans, split rate home loans and the list goes on. Then there is the matter of the interest rate, the term of the loan, the amount of the loan as well as the mortgage settlement process.  Should you take a mortgage loan with all the bells and whistles such as linked accounts, revolving credit plans and access bonds?  Or should you settle for a no frills no fuss fixed home loan that does not offer the flexibility of a more glamorous variable rate mortgage?

Well common sense tells one that seeking expert advice is the best way to go. Not only will the team at Freedom Lending advise you about the best mortgage, they will actually negotiate the best possible terms and conditions for you, so you pay less interest, less settlement fees and you also get some bells and whistles if you need them.


Mortgage Brokers and Mortgage Companies in Iowa, and Nebraska

Why should we call on mortgage brokers?

Mortgage Brokers: First of all let’s see what mortgage brokers are. They are independent bank companies or other non-banking financial institutions, like those from Colorado, Denver, Iowa, Omaha and Nebraska, that mediate loans. They are therefore intermediaries between customers and banks. Basically, brokers offer advice, handle the necessary documents for a loan, together with beneficiary they sustain the credit to the bank and provide other useful services. The fact that is an independent company offers the first benefit for a broker:  to provide people interested in a loan the possibility of choosing, in the same time, various types of credits without being under the necessity of ranging to several banks and lose a lot of time.

Besides the advantage of having, in the same place and in the same time, all banks’ offers for choosing a credit by calling on a broker, you can visualize the lending conditions so that you can choose the best offer. Because a broker not only provides you with the information you can get from the bank, but it helps to understand it and provides you useful information about these offers. When you think about the financial terms and the shuffles regarding the rate or the commissions which are quite ingenious and well hidden, you really need such a help.

But a question arises: do the mortgage brokers really give me the best credit offers? Isn’t it possible that he has an agreement with a bank to sell them preferential loans, in return for higher commissions? No way. All brokers collected the same commission regardless of the bank which the customer chooses. Therefore, the broker has no interest to favour one or another bank. The mortgage brokers companies provide customers free assistance in terms of legal or notarial issues, especially in case of mortgage loans and real estate loans.